Property Sector

UOA

UOA Development Berhad Initial Public Offering (IPO) received an overwhelming response with its public portion of 60 million shares. It was oversubscribed by 3.40 times. The IPO attract 23,171 applications or 263.9 million shares.

The institutional IPO prices was fixed at RM2.60 per share. Accordingly, the final retail price was fixed at RM2.52 per shares, represent 3 percent discount to the institutional price. The refund of RM0.38 per share will be send to successful retail applicants by 10 market days.

30 million shares were allocated for Bumiputera category while 30 million shares were allocated for Malaysian Public category. Below are the allotment summary for public portion.

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Initial Public Offering

So far, 2011 is a good year for Initial Public Offering (IPO) listing in Bursa Malaysia. At the time of writing, there were 14 new IPOs listed. Out of these figure 8 IPOs were listed in the Main Market while 6 were listed in ACE Market.

All the IPOs debuted higher than IPO price on the first day of listing. However, 3 out of the stocks close lower than IPO price at the time of writing.

If you are interested to apply for upcoming IPO, take a look at the following table which shows the upcoming IPO for 2011.

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UOA

UOA Development Bhd, a property development and construction company is schedule to be listed in Main Market on 8th June 2011.

The Initial Public Offering (IPO) consists of 407 million ordinary shares at an IPO price of RM2.90 per share at RM0.05 par value. However, the final retail price will be equal to the 97% of the institutional price.

Out of 407 million shares, 337 million shares are offered to Malaysian and foreign institutional and selected investors (including bumiputera investors approved by the International Trade and Industry Ministry) and a retail offering of 70 million shares to the Malaysian public, eligible directors and employees of UOA Development, its subsidiaries and persons who have contributed to the success of UOA and its subsidiaries

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Iskandar

The development in Iskandar Malaysia is picking up with 2012 as the potential inflection year. Investment targets have been surpassed and foreign participation is coming in. The key sectors to benefit from Iskandar are property and construction.

For Iskandar exposure, OSK recommend UEM Land for the property side given that it is the largest land owner at Nusajaya and KimLun Corp for the construction angle as it has a strong orderbook track record in Johor.

Other names offering Iskandar exposure include SP Setia for its Setia Eco Gardens development, Gamuda for its Horizon Hills development and Sunway which is constructing Legoland and BioX-Cell.

The table below is the target price for selected stocks for Iskandar exposure.

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OSK foresee that market will recover in May as they believe the 1Q2011 will at least meet downbeat expectations after the past 4 quarters of disappointments. With the potential for reasonable results, OSK believe the market will shift back to fundamentals and look back at Big Caps.

Strategy for the month would be to Buy fundamentally strong Big Caps as well as Trade on the Property sector as the newsflow here could resume after a couple of months hiatus.

OSK Top Buys are big caps with Maybank, CIMB, and Axiata are top banking & telcos stocks. AirAsia’s reintroduction of fuel surcharges and upcoming listing of its associates should help its share price while UEM Land is an excellent proxy for newsflow in the property sector

The table below are the target price for OSK’s May 2011 top picks.

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